Global Environment Centre Foundation (GEC)
| Contact | Japanese |
 Home > Activities > Climate_Change_Mitigation

Reports of New Mechanisms Feasibility Studies: FY2011

Title of Feasibility Study (FS)New Mechanism Feasibility Study for Renewable Energy Development by Wind Power Generation in Low Wind Speed Conditions in Thailand
FYFY 2011
Main Implementing EntityYonden Engineering Co., Inc.
FS PartnerShikoku Electric Power Company, Inc., Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. ITOCHU Techno-Solutions Corporation, Thai Local Company (Counterpart Company), ENSOL(Local consultant company)
Location of Project ActivityThailand
Category of Project ActivityRenewable Energy
Summary of FS ReportPDF (456KB)
Description of Project/ ActivityThe bilateral offset credit mechanism project for which this Study is meant covers the entire wind power generation activities in Thailand. CO2 emission reduction shall be attained by way of replacing fossil fuel generated electricity through wind power generation. Through this Study the optimal plant plan for this Project shall be implemented and the economic viability of such plant shall be assessed. Model projects in low wind velocity regions & areas throughout Thailand shall be verified and agendas for wind power generation projects in Thailand shall be analyzed. By way of introducing Japanese wind power generation technology, effective frameworks for a new mechanism shall be explored for wind power generation business in Thailand where no project has been implemented within the framework of CDM and wind power generation projects shall be promoted and diffused under a new and effective financing mechanism.
Reference Scenario and Project/ Activity Boundary(1) Determination of reference scenarios
    The diffusion of wind power generation projects lags behind although they enjoy certain incentives under the existing system. Their further diffusion will be difficult unless economic incentives such as emission credits are provided. Therefore, the reference scenario shall be based on the continuation of the status quo.
(2) Determination of boundary:
Geographical boundary:
    The boundary shall cover the wind power generation plant facilities throughout Thailand, which are eligible for assistance under the bilateral offset credit mechanism and the electric power systems supplying electricity from wind power plants.
Boundary of technologies and capacity of facilities eligible:
    The boundary shall cover large size wind turbines of 2-3 MW with a performance power of cut-in wind velocity of less than 3.5m/s, that require Japanese and other foreign sophisticated technology and financial assistance.
Monitoring Methods and PlanWhat is going to be monitored in this Project are 2 items, namely the quantity of electricity to be sold by the wind power generation project entity to the grid and the grid emission factor
The methodology for monitoring these parameters shall correspond to CDM methodology ACM0002 (consolidated baseline methodology for grid-connected electricity generation from renewable sources). 
GHG Emissions and ReductionsThe AEDP targets to introduce by 2022, 800MW of wind power capacity. If 10% of the target value is achieved, GHG reduction is 391k tCO2, if 30% of the target value is achieved GHG reduction is 1,342k t CO2, if 50% of the target value is achieved, GHG reduction is 2,292k tCO2, if 100 % of the target value is achieved, GHG reduction would be 4,668k tCO2
MRV System for GHG ReductionsAs regards measurement methodology (M), refer to the methodology for monitoring & program. Reporting shall be made by way of producing receipts etc. from power companies
In verifying the net power generation amount, the amount of power sales shall be checked against power generation certificates and invoices. This method is in line with the existing meter reading system in Thailand. In calculating emission reductions, whether or not the emission factor was correctly applied and whether or not there was any error in calculation shall be verified.
Analysis of Environmental, Socioeconomic and other Impacts (including Securement of Environmental Integrity)Construction sites must be fully examined and selected to avoid problems of noise, landscape spoiling and bird strikes by carrying out investigation on conditions so f residential areas, spots of scenic beauty and flight routes of migratory birds, etc. around the proposed construction site. Environmental impact assessment (EIA) must be implemented when such construction works take place along or near Class I Watersheds, river coasts & sea coastlines, etc.
Financial PlanningWhen financial institutions are looked for that may provide funds for wind power generation projects, the Revolving Fund or ESCO Fund may be thought of. It would be difficult for wind power generation projects characterized by high initial cost to apply for funding from these Funds because of the low funding ceiling per project and the short repayment period. Funding from private financial institutions means high interest payment and severe terms. BOI tax incentives such as exemption or reduction of corporate tax and import duties have proved to be insufficient so far for the promotion and expansion of wind power generation business. Viewed in this light, financial assistance for funding initial cost is considered to be an effective tool under the new mechanism.
Introduction of Japanese TechnologyIn designing a new mechanism, a comprehensive package type proposal covering funding, technology and know-how is essential.
(1) Funding
    It is recommended that funds shall be transferred to DESD (management organ of the ENCON Fund) for the existing ENCON Fund.
(2) Technology
    The best use of Low Wind Velocity Oriented Wind Power Generation technology is considered to be the best solution.
(3) Know-how
    Right from the Planning stage, supervisors should be dispatched from Japan and local training &education should be organized. Assistance in providing construction know-how and operation & management know-how such as O&M accumulated and stocked in Japan will contribute to the promotion of introduction of wind power generation
(i.e. Improvement of Local Environmental Problems)
CO2, NOx, SOx and particulate matter were selected as the target items of assessment. Among thermal power generation types that can complement & follow power variation in wind power generation, GTCC(Gas Turbine Combined Cycle)has been selected and verified as its alternative power source as it has a large total capacity in Thailand.
Contribution to Sustainable Development in Host CountryA package type proposal comprising both hardware and software elements shall be made. In terms of hardware assistance, improved economic viability shall be aimed at by way of providing funding for initial cost and in terms of software assistance Japanese engineers shall be dispatched to provide know-how support. It is important that these be provided under a new mechanism as a national policy. As secondary effects such integrated approach combined will develop new industrial sectors and thus create new employment opportunities. In the long run know-how transfer will make possible the domestic development and construction of wind turbines in Thailand and it is expected that the sustainable development of wind power generation business of its own will be promoted in Thailand.

| Home | About GEC | Activities | Publications |

Copyright Global Environment Centre Foundation (GEC). All rights reserved..